Purpose

It is the Council’s role in determining its local funding
formula and funding levels for Lincolnshire’s special and
alternative provision schools. The Government grants
announced in 2025/26 is in response to the increasing
costs schools are facing through staff pay following
national decisions, however this was only part funding
the cost. Special and alternative provision schools are
impacted greater financially from pay awards due to the
schools higher staff ratios compared to mainstream
schools from supporting higher complexity of pupils
needs. It remains important that the sector is supported
and funded fairly through the current funding formula
and the additional DfE grants for staff pay costs,
including at a time of increasing demands on specialist
places.
The Council has applied a sector wide average of £164
per place one-off funding in addition to the local funding
formula and DfE grant funding. This still recognises
Lincolnshire’s special and alternative provision schools
requirement to deliver 0.5% efficiency savings of pay
cost increases seen in 2025.
Reflected in the £164 per place funding is a sector wide
3.5% inflation uplift to non-staffing costs to reflect
current prices not reflected in the original budget
assumptions.
2026/27 sector funding formula and funding levels are
currently being considered through a Council-led review
with sector representatives to support the following
objectives:
• Simplification of the funding arrangements for
special school to support improved financial
management and planning
• Consideration and updates to the funding levels
schools underpinned by key cost drivers
• Support special schools meet higher needs of
pupils through funding provided
• Support schools with increasing place numbers,
where available

Decision

To approve the one-off distribution of high needs funding to Lincolnshire special and alternative
provision schools in 2025/26 to supplement the grant
funding received through the Department for
Education’s (DfE) Core Schools Budget Grant relating
to the 2025 pay awards. The DfE funding for the 2025
pay awards were only part funded: 1.7% funding for
the teachers’ pay award of 4% and 0.9% funding for
the support staff pay award of 3.2%. The schools were
required to meet remaining cost through efficiencies.
A 3.5% inflation uplift has been applied to non-staffing
costs to reflect current pricing trends not reflected in
the original budget assumptions.
The £164 per place rate will be applied across each
special and alternative provision schools academic
year place numbers to contribute towards the funding shortfall in 2025/26 only

Alternative options considered

The Council could choose not to respond to the
increased cost pressures across Lincolnshire’s special
and alternative provision schools, however, it remains
important to deliver fair funding to the sector. The sector
is significantly impacted financially by the DfE funding
decision due to the schools higher staff ratios from
meeting higher complexity of pupils needs.